Demand for useable warehouse space in good locations is on the rise. Current warehouse space across North America is quickly becoming crowded and much of it is too dated to accommodate the increasing automation occurring throughout the warehousing industry. As such, demand for the development of new space, and the remodelling of existing space is at an all-time high. In fact, the industrial real estate market reached $20.9 billion in Q1, an increase of about 34%. According to PWC Canada, the growth of e-commerce has created an all-time high in demand for improved industrial spaces.
More often than ever, warehouses are being built close to large business centers to facilitate the increase in Last Mile Delivery (LMD). Customers continue to demand faster delivery and a well-situated warehouse allows companies to meet these expectations. Investors in the distribution industry are beginning to focus on improvements to existing space, allowing for the implementation of innovative technology within the warehouse. As e-commerce and LMD continue to grow and expand, the availability of warehouse space will be an essential consideration within the industry.